Abstract [en]

This paper analyses how increased R&D expenditures and market size influencethe distribution of comparative advantage. Previous studies report ambiguousresults and also refer to periods when markets where much more segmented andproduction factors less mobile. The empirical analysis comprise 19 OECDcountriesand spans the period 1981 to 1999. It is shown how an increase inR&D-expenditures by one percentage point implies a three-percentage pointincrease in high-technology exports, whereas market size fails to attainsignificance. Also institutional factors influence the dynamics of comparativeadvantage.

Place, publisher, year, edition, pages

CESIS, KTH Royal Institute of Technology , 2006. , p. 31

Series

CESIS Working Paper Series in Economics and Institutions of Innovation ; 61